MONTREAL - Two Western oil and gas companies have called off plans to complete two shale-gas test wells in the Drummondville area for at least six months, citing depressed commodity prices, high costs and indirectly public opposition.
The two companies, Questerre Energy Corp. and Talisman Energy inc., both pioneers of shale-gas exploration on the St. Lawrence South Shore, stressed that low natural gas prices in North America have forced producers to slash exploration budgets in high-cost areas such as Quebec. Prices now average $3.50 per thousand cubic feet.
Drilling costs in Quebec are higher than in Wsetern Canada because of lack of equipment and experienced crews, the industry says.
Questerre and Talisman say the Utica shale deposits of the Northeastern U.S. extend into Quebec and they have been drilling in the St. Hyacinthe-Drummondville area for several years. Objectors in the rich agricultural area claim water and chemicals forced at high pressure into the shale rock to release the gas - - the "fracking" process - - would threaten the water table .
They have demanded a moratorium on exploration, but the Quebec Government has refused..
